Oct 25 (Reuters) - Potash Corp of Saskatchewan's
third-quarter earnings fell 22 percent as a standoff
over new contracts led to a sharp drop in shipments to China and
India, the world's two biggest consumers of the company's
namesake crop nutrient.

The world's biggest fertilizer maker said on Thursday that
overseas potash shipments by North American producers dropped by
one quarter to 1.9 million tonnes in the period. China accounted
for just 12 percent of sales and India 5 percent.

"The weakness obviously is in China and India, but that
shouldn't be a surprise to anyone," said analyst Spencer
Churchill of Paradigm Capital.

Potash Corp, Agrium Inc and Mosaic Co
conduct offshore potash sales from their mines in western Canada
through the marketing agency Canpotex.

Analysts had expected Canpotex to renew supply contracts
with China and India in late summer, but now they say it may
take until late 2012 or early 2013.
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